1. National Oil Corporation of Kenya Oil and Gas Potential in Kenya 9 th Africa oil & Gas, Trade & Finance Conference & showcase Maputo John Ego Senior Geologist National Oil Corporation of Kenya NOT AN OFFICIAL UNCTAD RECORD

2. National Oil Corporation of Kenya KENYA AT A GLANCE Social: Government type:Democratic Rep. Size:582,646 sq. km Religion:Christian 78%, Muslim10% Muslim10% others 12% Capital City:Nairobi Main seaport: Mombasa National language:Kiswahili Official language:English Economic: Population:31.5 million (2003) Currency:(KSh.) GDP per capita: US$. 322 Major GDP earners: Tourism, tea, horticulture, Coffee Coffee

3. National Oil Corporation of Kenya KENYA SEDIMENTARY BASINS

4. National Oil Corporation of Kenya OIL EXPLORATION HISTORY 1950’S - Oil exploration commenced 1950’S - Oil exploration commenced 1960 to 1984 - 16 wells drilled mainly in the Lamu and Anza basins 1960 to 1984 - 16 wells drilled mainly in the Lamu and Anza basins 1981- NOCK was incorporated in 1981 1981- NOCK was incorporated in 1981 1984 GOK enacted new Petroleum (Exploration and Production) Act. 1984 GOK enacted new Petroleum (Exploration and Production) Act. 1986 Petroleum (E & P) Act revised. Royalties replaced by PSC’s 1986 Petroleum (E & P) Act revised. Royalties replaced by PSC’s 1985 to 1992 - Further 14 wells drilled 1985 to 1992 - Further 14 wells drilled 1995 - Lamu Basin Study completed. 1995 - Lamu Basin Study completed. 2001 - Tertiary Rift Study complete 2001 - Tertiary Rift Study complete 2000+ - Award of offshore PSC’s and reinvigorated exploration 2000+ - Award of offshore PSC’s and reinvigorated exploration

5. National Oil Corporation of Kenya CURRENTLY LEASED ACREAGE

6. National Oil Corporation of Kenya EXPLORATION DRILLING Anza Basin – 10 Wells Tertiary Rift Basin –2 wells Mandera Basin – 2 wells Lamu Basin – 16 wells

7. National Oil Corporation of Kenya KENYA GEOPHYSICAL DATABASE Pre-existing Data 2D Seismic Onshore : 39,298 km Offshore : 25,552 km Aeromag : >268,00 km Gravity: 12,313 km Recent Activity 2003/04 7,884km 2D Seismic 2004/05 3,600 2D Seismic

8. National Oil Corporation of Kenya HYDROCARBON POTENTIAL Basin Area km 2 Wells drilled Aver. Sediment thickness Lamu132,77016 12,000 m Mandera51,9202 10,000 m Anza94,22011 Tertiary Rift 38,9042 4,000 m 4,000 m Sedimentary Basins

9. National Oil Corporation of Kenya ANZA BASIN AnzaAnza Basin

10. National Oil Corporation of Kenya HYDROCABON OCCURANCES IN ANZA BASIN Lower Cretaceous Clastics flowed gas during DST (Ndovu-1 well) Lower Cretaceous Clastics flowed gas during DST (Ndovu-1 well) Tarry oil associated with water in Sirius-1 well Tarry oil associated with water in Sirius-1 well Gas shows in Lower Cretaceous sands Gas shows in Lower Cretaceous sands Oil shows/flourecence/staining in aptian sands in Ndovu-1 well Oil shows/flourecence/staining in aptian sands in Ndovu-1 well Oil shows in: Oil shows in: ─ paleogene in Hothori-1 well ─ Miocene to Cretaceous in Chalbi-3 well

11. National Oil Corporation of Kenya MANDERA BASIN Failed Rift system Failed Rift system Permo-Triassic to Tertiary in age Permo-Triassic to Tertiary in age Sediment thickness ~ 10km Sediment thickness ~ 10km Presence of hydrocarbons supported by > 200m thick sand impregnated with biodegraded asphalt Presence of hydrocarbons supported by > 200m thick sand impregnated with biodegraded asphalt Surface Geology of the Mandera Basin

12. National Oil Corporation of Kenya TERTIARY RIFT BASIN(s) Consisting of at least 9 sub-basins Consisting of at least 9 sub-basins Oligocene to Pliocene in age Oligocene to Pliocene in age Sediment thickness up to 3 km Sediment thickness up to 3 km Potential reservoirs: up to 40% porosity in sands (Loperot-1 well) Potential reservoirs: up to 40% porosity in sands (Loperot-1 well) Presence of hydrocarbons supported by oil recovered in Loperot-1 ~ 29 o API Presence of hydrocarbons supported by oil recovered in Loperot-1 ~ 29 o API

13. National Oil Corporation of Kenya STRUCTURAL SETTING

14. National Oil Corporation of Kenya LOPEROT-1 WELL GEOLOGICAL COLUMN Drilled by Shell in 1992 Drilled by Shell in 1992 Encountered excellent Tertiary reservoirs Encountered excellent Tertiary reservoirs Found source rocks with up to 7% Total Organic Carbon Found source rocks with up to 7% Total Organic Carbon Tested oil ~ 29 o API Tested oil ~ 29 o API

15. National Oil Corporation of Kenya LAMU BASIN Lies both onshore & offshore. Lies both onshore & offshore. Formed during the separation of Madagascar from Africa Formed during the separation of Madagascar from Africa Sediments range in age from Upper Carboniferous to Recent Sediments range in age from Upper Carboniferous to Recent Sediment thickness of up to 12 km Sediment thickness of up to 12 km The Tertiary section contains highly prospective source and reservoir units The Tertiary section contains highly prospective source and reservoir units

16. National Oil Corporation of Kenya REGIONAL STRUCTURAL SETTING Tertiary Cretaceous Jurassic Triassic 8km WE SIMBA-1

17. National Oil Corporation of Kenya LAMU BASIN EXPLORATION POTENTIAL WELL DEPTH (M) RESULTS Simba-13604 Gas show 0.7% C 1 Kofia-13629 Oil show at 1740 M. And Gas show Kipini-13663 TOC 1.1% Pate-14188 TOC 2% Maridadi4197 Oil show at 3660M Gas and oil showsGas and oil shows Multiple tectonic trends with large faulted 4-Way dip closures off shoreMultiple tectonic trends with large faulted 4-Way dip closures off shore Oil potential includes multiple petroleum systems ranging from Tertiary to TriassicOil potential includes multiple petroleum systems ranging from Tertiary to Triassic

18. National Oil Corporation of Kenya EXPLORATION OPPORTUNITIES Open Blocks 1 - 33,636 sq km 2 - 15,528 sq km 3 - 24,539 sq km 9 - 27,776 sq km 10A - 15,289 sq km 10B - 25,512 sq km 11 - 35,786 sq km 12A - 18,788 sq km 12B - 4,169 sq km L-1 - 19,305 sq km L-2 - 21,979 sq km L-3 - 9,636 sq km L-4 - 7,025 sq km L-10- Offshore Lamu Relinquished Acreage

19. National Oil Corporation of Kenya KENYA – FRONTIER INVESTMENT Political stability with positive investment climate Political stability with positive investment climate Large frontier (Onshore/Offshore) acreage Large frontier (Onshore/Offshore) acreage Competitive commercial terms Competitive commercial terms Acceptable balance of risk/reward. Acceptable balance of risk/reward. Previous exploration data readily available. Previous exploration data readily available. Low entry cost, no signature bonuses Low entry cost, no signature bonuses Award focuses on work programme Award focuses on work programme Provides investor with growth opportunities Provides investor with growth opportunities

20. National Oil Corporation of Kenya PSC Legal Regime Dev. & Prod. Period-25 years Acreage surrender -negotiable Surface fees-negotiable, Training fees-negotiable Natural gas discovery -Negotiate terms with Government Initial Exploration Period - with 2 automatic additional Periods:- terms negotiable In case of disc. - field evaluation programme allowed

21. National Oil Corporation of Kenya FOR FURTHER INFORMATION Visit: Kenya Booth Managing Director National Oil Corporation of Kenya. P.O. Box 58567 00200 Nairobi Telephone 254 20 6952000 E-mail mdnock@nockenya.co.ke Contact : or

22. National Oil Corporation of Kenya THE END THANK YOU